Buyouts are back in the networking sector. In separate announcements, two networking giants just unveiled deals to gobble up smaller fry.
The combination of Lightwire's high-speed transceivers and Cisco's systems expertise is expected to benefit backbone traffic providers and service providers. That's the traditional market for ultra-fast optical systems. Surya Panditi, Cisco's VP of service provider networking operations, explains that the deal will help its target customers "manage the continuing deluge of network traffic alongside tight capital and operating budgets."
That announcement instilled modest buyout hopes in other photonics specialists like Lightwire: Coherent
Elsewhere, F5 Networks
This is not, as you might have assumed, a direct play on the wireless signal. Rather, F5 will use Traffix technologies to bolster its handling of 4G traffic as it moves between cell towers, network hubs, and data centers. "F5 has the unique depth and breadth to make the transition from 3G to 4G and IMS much simpler, cost effective, and non-disruptive for carriers," says Traffix CEO Ben Volkow.
This deal is too small to merit disclosure of the financial terms, perhaps a disquieting thought for technology plays on 4G networking. If Diameter pioneer Traffix is too small for disclosure, how will 4G security specialist VirnetX
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Fool contributor Anders Bylund holds no position in any of the companies mentioned. The Motley Fool owns shares of Cisco Systems and IPG Photonics. Motley Fool newsletter services have recommended buying shares of IPG Photonics. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.